The EU/IMF rescue package is not in the in the long term best interests of Ireland, Labour Party Deputy Leader and Finance Spokeswoman Joan Burton told the AEJ.
Speaking to the Association on Tuesday, February 8, Deputy Burton said the political turmoil in the Fianna Fáil party hindered it from the securing the best deal. The deal, as currently structured, she said would prove a roadblock to Irish recovery. Unless there was real growth, the economy could not recover and the terms of the deal could not be met.
“The European Union has a special summit scheduled for March 24th/25th,” she said. “Whoever leads the new Government will have to hit the ground running to represent Ireland at this vital meeting.”
There is, she said, growing evidence that the eurozone’s crisis resolution mechanisms are not working as intended and that summit has to establish a revised framework.
“There are frenetic negotiations going on already across Europe to find a revised set of tools to allow countries to establish their credit worthiness in a viable way. A form of negotiation is already underway. My party is contesting this election seeking a mandate from the voters to be a major player on Ireland’s behalf in those vital talks.”
“I think that there is now a more general understanding that a bailout trap exists in that the conditions imposed are such that escape is impossible,” she continued. “It is perverse to set 6 per cent as the interest rate on European funds – that is a full 3 per cent margin over the actual cost of those funds to the EU.”